Millions seized as Megaupload.com founder arrested

NEW Zealand police raided several homes and businesses linked to the founder of Megaupload.com, a giant file-sharing site shut down by US authorities, and seized guns, millions of dollars, and nearly $5 million (€3.9m) in luxury cars, officials said.

Police arrested founder Kim Dotcom and three Megaupload employees on US accusations that they facilitated millions of illegal downloads of films, music and other content, costing copyright holders at least $500m in lost revenue.

Extradition proceedings could last a year or more.

With 150 million registered users, about 50 million hits daily and endorsements from music superstars, Megaupload was among the world’s biggest file-sharing sites. According to a US indictment, the site, which was shut down on Thursday, earned Dotcom $42m in 2010 alone.

Although the company is based in Hong Kong and Dotcom lives in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, and that was enough for US prosecutors to act.

New Zealand police served 10 search warrants at several businesses and homes in Auckland. Police said the seized cars include a Rolls Royce Phantom Drophead Coupe worth over $400,000 and several Mercedes. Two shotguns and valuable artworks were also confiscated.

Police seized over $8m, money that was invested in various New Zealand financial firms.

Dotcom, Megaupload’s former chief executive and current chief innovation officer, is a resident of Hong Kong and New Zealand and a dual citizen of Finland and Germany who had his name legally changed. The 37-year-old was previously known as ’Kim Schmitz’ and ‘Kim Tim Jim Vestor’.

Two German citizens and one Dutch citizen were arrested. They will remain in custody until a second hearing on Monday. Three other defendants — a German, a Slovakian and an Estonian — remain at large.